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Monday, 21 August 11:50 (GMT -05:00)



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Will Islamic banks become the rivals of Rothschild and the banks of USA and EU?


Bank news. Recently an interesting article under an intriguing title “Rothschilds against Arab rulers” has appeared on a web-site islam.ru. Although a number of analytics have perceived it as a continuation of the threadbare theme about the worlds behind the scenes, which is interesting only to the old-timer conspiracy theorists that are likely to perceive almost in anything “the long arm” of secret societies, organizations, families, or clans. The present article has irrevocably been referred to the whole regiment of similar creations from the range of “Rothschilds rule the world”, if it had not been for one “but”. It remarks a truly interesting idea that in critical conditions the western banking system has faced a strong rival, represented by Islamic banking. In order to conquer it, the western banking system has started revolutions in Arabic world. Beyond any doubt, this quite interesting hypothesis needs comments.

What is the point of Islam banking?

As the community experts of Islamic countries of Masterforex-V Academy note, the so-called Islamic banks are still one of the most mysterious phenomena in the world’s financial system:

1. Islamic bank is one of the institutions, created on the basis of Muslim rights concepts, where the most significant place is occupied by a ban on usury. The usurer himself falls into sin as well as the person who benefits from his services.

2. This means that Islamic banks entirely refuse from collection of interest and futures transactions (they are also under a strong ban on the Koran).

3. The major ban in Islamic banking system is the ban on time games. In other words, it is impossible to pledge future time for the present speculative business.

4. Moreover, Islamic banks adhere to the strongest ban on gambling. They cannot participate in lotteries or any other similar actions.

5. All deposits of the population are interest free.

6. Consequently, a ban on collection of interest from loans (riby) and a refusal from intended risk (garara) is the main difference of Islamic banks from western. Therefore, interest crediting and speculative business at fund and currency markets are not practiced.


Islamic bank is an investor-bank.

 

As a matter of fact, the present Islamic bank deals with project investment, sharing every possible risk with its clients. It cannot insure its investments. Jointly with borrowers, Islamic banks suffer losses on the projects, in which the funds have been invested.

It is for this reason that the bank carefully examines its future client, gets acquainted with its business-plan, allows itself to give advice. The bank is interested in the success of a started business not less than the person who addressed the bank for help.

Consequently, Islamic bank is oriented on real production, but not speculative business.

Credits for personal needs and credits for business development, received in Islamic banks, have considerable differences. Both of them are interest free, but in the second case the bank and the businessman sign an agreement, according to which profit as well as loss shall be shared.

Ordinary investors can also sign an agreement with the bank, entitling it to use their funds as investments (mudaraba) or refusing to give such privilege to the bank. In case of agreement, the investor shall receive his share in profit (from a successful transaction) or, vice versa, shall suffer certain losses. However, the particular feature of such transaction is represented by a total acknowledgement of the investor about the sphere, in which his money is involved. He is certain that these funds have not been involved in activities that are banned by Shariat (the production of alcohol, drugs, prostitution, gambling, pork processing and its trade, etc.).

Despite all the “ingenuity” in their operation, Islamic banks do not become bankrupts and even obtain considerable profit.


How do Islamic banks earn?

This definitely is a very important question. By refusing from the western system, which is based on usury, Islamic banking initially puts itself in a losing condition in comparison to the former. There arises a question: “By which means can there exist a bank that does not collect interest?”

1. Real property resale by installments. Instead of giving a loan to the client for the purchase of housing, the bank buys it and later sells it to the client by installments, but at a higher price. It is not considered to be a collection of interest, but a certain payment for the risk.

2. Participation in the funding of projects for a certain share in profit. Consequently, Islamic banks, unlike western, are aimed not at receiving maximum profit, but at creation of additional value.

3. Islamic banks also practice such transaction as murabaha. In other words, they deal with purchase and sale. According to an agreement with a client, the bank purchases certain goods for sale. In this case the bank can deal with marketing, transportation, storage, the sale itself.

4. Granting of a special credit "sukuk". The bank receives its percentage not from a granted amount but from the profit of an indebted company.

5. Islamic banks also actively deal with security papers, but are represented more like bidders.

6. Many faithful Muslims pay zakiattax on wealth. This is demanded not by the state, but by Shariat. Zakiat is a solely voluntary action intended to help the poor. In such a case, the faithful most frequently bring these funds into Islamic banks.


Is Islamic banking conquering the world?

 

The first Islamic banks appeared in Middle East slightly earlier than 30 years ago:

At present they are represented in 75 countries of the world (not only Islamic).

Their mutual resources amount to more than 300 billion dollars.

According to some assessments, the quantity of Islamic investments in the worlds economies has reached the amount of 400 billion dollars.

The volume of transactions in the international Islamic banks system undergoes a yearly growth of 15%.

Islamic banks confidently enter the worlds financial market, where the establish partnership with the worlds largest banks.

• Deutsche bank, Citibank, HSBC open special Islamic departments. Citibank has opened a specialized section. So-called “Islamic windows” operate in many European and American banks. However, in the last case there exists a considerable risk for a faithful Muslim that his money can be mixed with non-halal (impure) money, which is received from criminal.

Islamic banks have almost not suffered from the worlds financial crises, having demonstrated the highest effectiveness. Therefore, the present Islamic banking system is making considerable steps towards integration into the world’s financial system. At the same time, the largest western banks do not show hostility towards it (openly at least) and meet its needs in every possible way. The West is bond to take into consideration the billion of Muslims and their values.


Talks about the efforts of the West to “crash” Islamic banking by means of “Arabic revolutions” are no more than exaggerations. The only example with the first Tunisian Islamic bankZituna”, which after the revolution has been engulfed by Tunisian Central Bank that is under the control of the Rothschilds, is not very persuasive. At the same time, Americans were doing their best to save the overloaded with Islamic banks Bahrain from revolution. UAE and Saudi Arabia, where only Islamic banks exist, are predominated by peace and stability. However, in “revolutionary” Egypt and Tunisia only several financial establishments of this kind exist. At present, the same can be related to uneasy Yemen and Siria.

 

For a more objective assessment of the situation, the staff of the magazine "Market Leader" suggests a questionnaire in trader’s forum: in your opinion, for the western world Islamic banking system is:

an excellent solution of a difficult situation;

a real threat;

just an interesting exotica.

 

You are free to discuss this article here:   forum for traders and investors

 

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Trump’s Policies Make USA Lose Their Leading Position in the West

More and more international experts are concerned about Donald Trump’s policies. Some of them are concerned that because of him and his actions, the USA may lose their leading role in the Western world.  

 

 

According to Fareed Zakaria, political expert, CNN host and columnist for The Washington Post, Trump’s recent political decisions have made the European Union so united that Putin could never have dreamed of. Even though he is not going to make the Western world collapse, the USA may still lose the number-one status in the Western world.

Publication date: 31 July 12:09 PM

Does China Oust Russia From Central Asia?

As the situation in Afghanistan is getting worse, this is raising a lot of concerns in the international expert community. The Islamic terrorist threat may spread from there to Russian and China, they say.

 

 
According to a Norwegian observer for Dagbladet, there exist 5 countries in Central Asia that can be seen as potential threats to Russia and China. The thing is, the Islamic terrorism may well spread from those countries to their neighbors. They say that Afghanistan is now the biggest potential threat since the amount of armed conflicts in the country are getting more and more frequent and tough. As Taliban (the local terrorist organization) is said to be sponsored and suppled with arm and ammo, the USA seems to be putting the blame for this on Russia.
Publication date: 29 July 11:53 AM

China Invests Heavily In Africa

You probably know that has been investing in a number of countries of strategical importance. There is a lot of African countries on the list. According to several observers, Chinese banks have given such countries over 77 billion euros since 2000.

 

 
Not so long ago, there was a documentary broadcast on the national TV. The documentary is about a railway line in Kenya built by China Road and Bridge Corporation. It praises Chinese engineers and tells the viewer that the Chinese government is ready to support African countries on their way to economic growth.
Publication date: 24 July 11:46 PM

Chinese Economy Is Way Stronger Than Trump Thinks

The Chinese economy has got much stronger. It can now even be compared to the American one, which is viewed to be the world’s strongest economy. Washington clearly underestimates Beijing when saying that the China has been flourishing in the international markets exclusively at the expense of unfair trade.

 

 
Publication date: 23 July 10:48 AM

British Start Getting Disappointed with Brexit, Soros Says

Last year’s Brexit referendum has become a major challenge for the British government, George Soros says. He says that more and more British citizens start getting disappointed with the Brexit.

 

 
The world-famous financier and CEO of Soros Fund Management assumes that now the economic reality starts revealing the real state of affairs and debunk their delusions related to the happy living outside of the European Union. More than 12 months ago, the advocates of the Brexit scenario were trying to persuade people that this choice won’t affect people’s standards of living. Well, since then, the government has been trying to implement this promise at the expense of increasing the internal debt.
Publication date: 14 July 02:40 AM

Two Reasons Why Russia Keeps Losing Influence Over Post-Soviet States

After the USSR ceased to exist, the Kremlin was counting on retaining their influence in the region. However, the truth is that Russia as the major successor to the USSR has been losing its influence over the remaining post-soviet states. There are 2 reasons for that.

 

 
According to the related report recently published by private American analytic company Stratfor, there is a range of new tendencies making it difficult for Russia to stay influential in the post-soviet region, especially when it comes to Ukraine. The two major reasons for that are believed to be the declining role of the Russian language in the region as well as the existing threats of mass protest inside Russia itself.
Publication date: 06 July 01:42 PM

Business with China: New Reality after Blocking Yandex and VK in Ukraine

Ukrainian President Petr Poroshenko has expanded the list of sanctions against individuals and legal entities from Russia. To be more specific, Ukraine imposed sanctions on several Russian online companies, including Yandex, which is Russia’s biggest IT company, as well as some other popular web services like VK, Odnoklassniki, and Mail.ru Group. According to the presidential decree, Ukrainian Internet providers are forbidden to grant access to those blacklisted websites.

Publication date: 06 July 01:13 AM

China Doesn’t Need Russian Gas and Pipelines

Don’t you remember how a couple of years ago Gazprom cut natural gas supplies to Ukraine a number of times. By the way, Ukraine alone used to buy 55 billion cubic meters of natural gas back then. Now Ukraine buys no natural gas form Russia at all. Apparently, Moscow keeps on looking for other outlets. There has been a lot of buzz about China as a new big outlet for Russian natural gas and crude oil. It turns out that two new pipelines should have transferred to China some 38 billion cubic meters of natural gas every year. Yet, this was the maximum amount, and it couldn’t clearly make up for the export of natural gas to Ukraine.

Publication date: 05 July 11:15 AM

Mass Media on Forthcoming Trump-Putin Meeting

For those of you who don’t know, the first official meeting between Donald trump and Vladimir Putin has been confirmed. It’s planned for July 7, during the G20 summit in Hamburg, Germany.

 

 
Some observers say that the White House did the Kremlin a favor by being the first one confirming the official meeting during the G20 summit. This announcement helped the sided to get of the rumors around the situation and helped Moscow to save face in the Russian media space.
Publication date: 05 July 06:24 AM

Putin and Trump Part Ways

According to The Daily Telegraph observer Con Coughlin, even if Donald Trump used to seek ways to improve the relations with Russia, today he is probably going to really abandon this idea. The thing is that not so long ago, the U.S. hit a Syrian fight jet, the one belonging to Bashar Asad’s troop. Since Putin and Asad are allies, this fact is definitely going to affect the process of improving the U.S.-Russia relations, and probably suspend this process for the near future.
 
Publication date: 29 June 11:50 PM